Peculiar Patterns on the Four Equity Futures October 17

Oct 17, 2017: 11:57 AM CST

Which of our four equity markets is the strongest/weakest and what patterns are emerging?

Let’s see them and plot the possible future course:

In the top left we see the @ES Emini forming a narrowing pattern or possible “Bearish Rising Wedge.”

However the strongest market – continually rising – is the @YM Dow followed by the @NQ NASDAQ.

These markets haven’t even pulled back more than a day since the late September bullish reversal.

We’re seeing a “Creeping” or “Oozing” Trend higher and higher and higher.

The big stand-out on the grid is the @TF or Russell 2000 which is showing clear relative weakness.

While the other three indexes are clearly rising and creeping, the Russell is simply retracing and trading lower.

It hasn’t formed a meaningful new high since the beginning of October while the other three indexes crept steadily higher.

When – and IF – these markets turn, look to short the weakest market which is the Russell.

While they’ll all retrace, the current pattern suggests that the Russell will fall faster than the others.

That’s the going logic at least – as we’ve seen lately, certainly anything can happen!

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Corey Rosenbloom, CMT

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